Trump’s Tariff Gamble: Will It Backfire on American Consumers Instead of Hurting Europe?
The Trump administration’s tariffs could have both positive and negative effects. If the intent is to hit European exports, the effect could instead be significant damage for American consumers, already struggling with inflation and the rising cost of living. This is what Antonio Cellie, CEO of Fiere di Parma, claims, who allays concerns about Made in Italy, especially in the agri-food sector.
“Italian products are less at risk than those from other geographies,” explains Cellie. “The tariffs will hit the US more than Europe because American ‘premium local’ products, with galloping inflation, already cost more than Italian ones. In the case of wine, for example, bottles from Napa Valley have now exceeded the prices of our DOCGs.”
Why can Made in Italy resist tariffs?
Italian agri-food sustains a premium positioning that benefits it: consumers who purchase Parma ham, Parmigiano Reggiano, extra virgin olive oil, or Italian wine do so for their taste and quality, attributes that are challenging to replicate with less prestigious alternatives. South American and Australian competitors are unable to match Italian excellence, and the American market is also aware of this difference.
On the other hand, the real problems for the United States could come on the domestic front:
Inflation continues to rise, and basic products, almost all made in the USA, will become more expensive for American consumers.
Real incomes are falling, which means that fewer families will be able to afford quality products, regardless of their origin.
The American public debt is growing, and the increase in prices on essential goods risks further worsening the economic situation.
The tariff paradox: Who really loses?
If Trump intended to target Europe, the outcome could have a significant impact on the United States. While Italian products will maintain a solid market share among the most demanding consumers, the real problem for the US government will be managing the increase in internal costs and the population’s reaction.
“At equal prices, the American consumer will continue to choose Made in Italy for quality and authenticity,” concludes Cellie. However, who will bear the brunt of this trade war?
